On July 1, 20x7, Axe Co. received P103,288 for P100,000 face amount, 12% bonds, a price that yields 10%. Interest expense for the six months ended December 31, 20x7 a. 6,197 b. 6,000 c. 5,164 d. 5,000
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On July 1, 20x7, Axe Co. received P103,288 for P100,000 face amount, 12%
a. 6,197 b. 6,000 c. 5,164 d. 5,000
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- The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y2 June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y3 June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. (Record the…Diana Inc. issued $300,000 of its 5%, 5-year bonds for $287,215 when the market rate was 6%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Round intermediate and final answers to whole dollar amount. Cash InterestPayment Interest onCarrying Value Amortization ofDiscount Carrying Value Jan. 1, Year 1 $fill in the blank 1 June 30, Year 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 fill in the blank 5 Dec. 31, Year 1 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 June 30, Year 2 fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13On January 1, 2012 Zesto Company received $1,032,880 for $1,000,000 face amount, 12% bonds, a price that yields 10%. Interest is payable semi-annually every June 30 and December 31. Interest expense for the year ended December 31, 2012 is a.$123,946 b.$120,000 c.$103,288 d.$102,870
- On 1 January 20X5, Franco Ltd. purchased $440,000 of Gentron Company 7.00% bonds. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 8% on the date of purchase. The bonds mature on 31 December 20X10. The company has a 31 December year-end. Required: 1. Calculate the price paid by Franco Ltd. (Do not round Intermediate calculations. Round your final answer to the nearest dollar amount.) Price paid Period 2. Assume that the bond is classified as an AC investment. Construct a table that shows interest revenue reported by Franco, and the carrying value of the investment, for four interest periods. Use the effective-interest method. (Do not round Intermediate calculations. Round your final answers to the nearest dollar amount.) 0 $ 1 2 3 4 Cash Payment 361,607 View transaction list Interest Revenue Amortization Bond Carrying Value 3. Prepare the entries for the first four interest periods based on your calculations in requirement 2. (If no entry is…On June 1, $40,000 of bonds were purchased between interest dates. The brokerage commission was $600. The bonds pay interest at 12%, which is paid semiannually on January 1 and July 1. How much interest revenue will be recorded on July 1? Oa. $2,000 Ob. $2,400 Oc. $406 Od. $400On January 1 of the current year, a company issued 5-year 10% bonds with a face amount of P10,000,000 at 109. The following costs were also incurred related to the issuance: Legal and accounting fees for registration 25,000 Commission fees 40,000 Cost of printing and engraving bond certificates 30,000 Cost of promotion 15,000 At the date of issuance, the effective rate is determined to be 8%. The bonds are payable as follows: the principal is payable at the end of 5 years and interest is payable annually every December 31. As of December 31 of the same year, the bonds were found to have a fair value of 10,500,000. All changes in fair value are attributable to market risk. Compute for the following: (1) If the bonds were designated at fair value, determine: (a) Carrying amount of the bonds as of January 1 (b) Net effect to profit or loss owing to transactions related to the bonds (if your answer is a net loss, enclose in parentheses or add a negative sign) (2) If the bonds were measured…
- On January 1, 20x1, Etsy Co. purchased 10%, P4,000,000 bonds for P4,171,968. The bonds are classified as financial asset measured at amortized cost. Principal on the bonds mature in four equal annual installments starting December 31, 20x1. Interest is due annually at each year-end. The effective interest rate on the bonds is 8%. How much is the current portion of the investment on December 31, 20x1?Rolstone Corp issued $200,000, 8% debenture, 5 Yr bonds on Jan. 1, Interest payment dates are Jan 1 and July 1. The bonds are sold for 217,062 on Jan 1. Market rate is 6%. Prepare journal entries for the following. a. Sale on Jan 1 b. July1 entry Jan 1 entry. Yr 2 c. Oct 1 entry Yr 1 - End of Fiscal Year July 1 entry. Yr 2. Please answer compelete8
